NEW CURRENCY

New Zealand Times, Volume L, Issue 11653, 18 October 1923, Page 5

NEW CURRENCY

ISSUE OF “RENT^M^RKS.” PAPER STILL LEGAL. Reuter’s Telegram. BERLIN, October 16. Under t(ie dictatorial powers conferred by the Emergency Law, the Government has decided to launch a new currency scheme, largely on the lines of the ‘' bodenmark’ ’ scheme. "Vhe new uhit of currency will, however be. called the “rentenmark.” It will be issued by a new privately-owned bank called the Kentenbank, and will be backed by gold and securities. The Reutenbank will place 1200 million rentenmarks at the disposal of the Government. Paper marks will also be legal tender. CAPITAL OF NEW BANE. Reuter’s Telegram. (Received October 17, IQ.IO p.m.) BERLIN, October 18. The Rentenbank will show a capital of three milliard rentennnirks sqbseiil). ed in equal parts by agriculture ou one hand, ; and industry, trade, and commerce on the other. INDEPENDENT bank. Tlie “bodenmark” scheme was outlined in a cable message last month, summarising a Bill for the creation of a new currency provided for the establishment of a currency bank by the agricultural industry, trade, commerce, and banking world and property owners. The new mouey, it was proposed, would be the bodenmark. The bank would be 1 independent af Government intervention, and its capital, tax-free. Was fixed at 2400 million bodenmark. The bodenmark would be worth .385 grammes of fine gold. The Bill authorised the bank to grant loans to the Reich for the next two years in bodenmarks up to 2000 millions, and after two years the bank would be liquidated. The Reich would forthwith receive from the bank a loan free of interest of 500 million bodenmarks, wherewith Treasury Bills discounted by tlie Reiqhsbank would be redeemed, while the Reichsbank for its part would buy back against bodenmarks the Reichsbank paper money in circulatjqn.